Online trading with a reliable broker dealer that also offers zero commission trading and competitive leverage is a great option for you to learn the principles of trading without much risk. Highly successful investors do have some common traits. It makes sense for wannabe successful investors to identify them.
Discipline, Not Emotions
Discipline is one of the most important traits. In fact, it is the foremost trait since there can be nothing more damaging than letting emotions get in the way of wise decisions. With discipline you have some proven rules which you stick to. Otherwise, in the event of market volatility you could be taking emotional and foolish decisions.
There are two emotions you need to watch out for - pride could make you forget the losses you incur and keep you from changing your strategy, and false hope could make you cling to poorly performing stocks which could destroy your full portfolio. And of course, fear and greed are dangerous too, all of which make you take decisions with the heart and not the mind.
When you follow rules strictly, you don’t have time for emotions to take control of you. You would also be following a consistent pattern to make profits and be in fuller charge of your portfolio. And, regardless of your experience level or style of investing, rules can work for you and are easily accessible.
Keeping Tabs on Market Trends
One of these important rules is to always follow the market trend closely. Most stocks go by the overall market trend. That’s where you need to avoid taking risks, particularly if you’re a new trader. Even if you may think a stock’s fundamentals are great you should not buy it if the market is facing a downtrend, since there is a good possibility that its value would go down the moment you get hold of it.
Following Stock Charts
You need to depend on stock charts, which will help you track the movement of your holdings. Abnormal and irregular market action can be detected in charts of major indices. This will help you to exit the market before massive market drops and financial crises such as what happened in 2008, or at least reduce your losses.
You must rely on a stock chart to identify stocks with the greatest potential to go higher, even when the market is experiencing an uptrend. This helps disciplined investors to stay tuned during downtrends by holding on to stocks which they believe will rise when the market takes an upturn.
With a user-friendly platform and wide resources, TradeZero can make you a smart trader who goes by the rules and makes sensible decisions. All it takes is to call 954-944-3885 or email [email protected].
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